You can get up to Rs. 1 lakhs as tax benefits for your kid’s tuition fees
The Section 80 C of the Income Tax Act is the most widely known section for claiming deductions. And apart from public provident fund, premiums you pay towards your life insurance policy, and Equity Linked Savings Scheme (ELSS), there is yet another tool that offers you tax deduction, which not many are aware of. To know more, read on.
What is it: You can claim a deduction of up to Rs 1 lakh as per the section for tuition fees (school fees) you paid for education of children.
Who can claim: Keep in mind that you can claim this deduction only as an individual assessee and it’s not available to Hindu Undivided Family.
How much: You can claim a deduction under this section for fees paid for education only for two children. If you have more than two children, then you can choose any two children. If your spouse is also a tax payer, she can choose the other two children. Sadly, it’s only tuition fees paid for children which qualify. If you or your spouse is studying and paying tuition fees, it does not qualify for deduction.
Which courses: As per the act, you can claim tax deduction only for full time courses, at any college, school, university or educational institution in India . So, you can’t claim this deduction for any kind of private tuition fees you pay for your child’s education. Also keep in mind, it’s applicable for tuition fees. So if you’ve paid a donation to secure an admission, or if you’ve paid any development fee (some educational institute charge such fees to build buildings and the like) don’t get covered. It does not apply, even for hostel, mess, laboratory and transport fees. But, the good part is that full time course here includes pre-nursery or play school, and with cost of education for toddlers risking high each day, this is a best thing about this deduction.
Things to keep in mind: What if both parents have to foot the bill for the fee? For instance, if the tuition fee is Rs 1.5 lakh and the wife paid Rs 1 lakh and husband paid Rs 50,000, then the wife can claim deduction for Rs 1 lakh and the husband Rs 50,000. With cost of education rising each day, there is a good possibility that you qualify for this deduction. So, many be it’s time to look for those school fee receipts, you’ve paid.